BOULDER -- Plug-in vehicle (PEV) fleets are expected to increase from less than 1% of the global fleet vehicle market in 2018 to 12% of the overall fleet vehicle population by 2030, according to a new report from Navigant Research.

Fleet electrification is being driven by battery innovations, energy economics, and government regulation of transportation pollution. Cost reductions in batteries and other PEV technologies are reducing the purchase price of PEVs, while governments are incentivizing adoption with purchase incentives and emissions reduction goals.

“Fleet electrification has largely focused on the LDV segment to date,” said Raquel Soat, Navigant research analyst.

“However, recent developments with electric MHDVs point toward encouraging signs of future growth in that segment. For example, the 2017 introduction of the Tesla Semi, BYD’s debut of its refuse truck in 2018, and the success of electric buses in China over the last 4 years all show momentum toward larger fleet electrification.”

According to the report, many fleets have made commitments to use electricity in all or part of their vehicles in the next decade, including large MHDV fleets such as DHL, UPS, FedEx, and several city bus fleets in China.

While the transportation industry is transforming its energy system, it is also being disrupted by innovations in automated vehicle systems and advances in battery energy density.

Vehicle automation will likely encourage greater use of LDVs to augment alternative or public transportation modes and transform MHDV markets and uses, the report notes.

The report, Fleet Electrification, analyzes the global market for LD and MHD PEV fleet vehicles. The study provides an analysis of the market issues related to fleet electrification, including drivers like government policies and battery innovations and challenges with charging infrastructure.

Global market forecasts, segmented by vehicle class and region, extend through 2030. The report also examines the key industry players related to fleet electrification and provides case studies of notable projects from around the globe.

An Executive Summary of the report is available for free download on the Navigant website.